Swiss Re: 2018 Financial Condition Report

Swiss Re published today, 18 April 2019, the 2018 Financial Condition Report for the Swiss Re Group and regulated re/insurance legal entities domiciled in Switzerland for the reporting period ended 31 December 2018.

The report contains information on:

Swiss Solvency Test (SST)

the financial condition of the Swiss Re Group and the Swiss-regulated re/insurance entities:

Swiss Reinsurance Company Ltd,

Swiss Re Corporate Solutions Ltd,

Swiss Re Life Capital Reinsurance Ltd and

Swiss Re International SE, Luxembourg (Zurich branch).

Management summary

Swiss Re Group - In SST 2019, the solvency of Swiss Re Group remains at a very strong level of 251% and comfortably above the target of 220%. In a challenging year with large losses Swiss Re was able to generate a positive underwriting contribution. This is also reflected in a relative increase of insurance risk in the overall risk profile. Capital repatriation, the redemption of a subordinated instrument and depressed financial markets resulting in negative contribution from investments ultimately lead to a decrease in the overall SST ratio.

Swiss ReinsuranceCompany Ltd - In SST 2019, the solvency of Swiss Reinsurance Company Ltd (SRZ) remains at a strong level of 218%. Despite a challenging year with large losses SRZ was able to generate a positive underwriting contribution. This is also reflected in a relative increase in insurance risk and a higher market value margin. The dividend payment to the Group, the redemption of a subordinated instrument and depressed financial markets resulting in significantly lower contribution from investments ultimately lead to a decrease in the overall SST ratio.

Swiss ReCorporate Solutions Ltd - Swiss Re Corporate Solutions Ltd (SRCS) profitability in 2018 was impacted by underwriting performance, driven by an increase in severity and frequency of large man-made losses as well as unfavourable prior-year developments. In line with developments during 2018, the SST ratio of SRCS decreases by 23 points to 137%.

Swiss Re Life Capital Reinsurance Ltd - In SST 2019, the SST ratio of Swiss Re Life Capital Reinsurance Ltd (SRLC Re) decreases to 182%, 20 points lower than in SST 2018. The main driver for the lower ratio is a deduction for the projected dividend to be paid in 2019.

Swiss Re International SE Zurich branch - Technical result amounted to a loss of CHF -2.9 million in 2018, compared to a gain of CHF 3.4 million in 2017. Premiums earned increased by CHF 1.2 million in 2018, mainly due to an increase in volume in US business. Claims incurred increased by CHF -1.4 million, mainly driven by losses from US business. Operating costs decreased by CHF 9.9 . Net investment result remained unchanged, at CHF 2.8 million in 2018, compared to the prior year, while investment income increased, mainly due to higher income from short-term investments.